Healthy Food Business

[gytisceglys]

I am in process to start a new business to sell gluten free granola . Currently, I am negotiating prices with producers and distributors . I have a question - how much normally do I have to earn from one pack? Is there any standards? I understand that everything depends on the amount I sell , but I have never worked with shops and can't image how much I have to earn from one pack. Anyone working with healthy expensive food and have experience?
As an example my product to produce and pack would costs £4.
Plus distributor adds on top his own margin and shops margin. Producers can make 200-400 pacs per month. Not much left for me knowing that I want to sell at £6.99 in shops.
How much profit I have to have per pack/per month to earn to even start the business?

 

[HEYZEUS]

Hi

My background is an Chartered Accountant, I have worked as a Finance Manager for Rolls Royce, Pirelli Tyres and currently own my own Healthy Food/Catering Business.

In reply to your question - You need to identify the FIXED costs of your operations. Fixed costs are all the costs that will exist in your business irrespective of how many units you will sell.

Fixed includes Rent, Utility, Salary, Machine rent etc. If this figure totals £100,000 for the whole year, this means you will need to make £100,000 in your sales just to ensure the FIXED costs are covered. This is known as the Break-even point.

Any additional sales beyond this will go toward your pocket. So just using big round numbers: If your Sales = £150,000, your Fixed costs = £100,000, this leaves you with £50,000. But for this £50,000 you will also have variable costs, which are associated with every sale you make...so it could be your petrol, telephone calls, emergency delivery etc.

I would recommend you look at Accounting Basics before you begin your venture. Always remeber to be on top of your finances (know what is coming in and going out).

Private message me if you want to discuss

 

[Mark T Jones]

Do you have your packaging arranged, if not we can supply

Do you sell packaging by any chance? You should really let us know!

 

[Mark T Jones]

Yes we do, would love to discuss with you. I cant do my email on here yet.

Thanks

Chris Read

Just keep spamming to get your post count up

 

[AG Consult]

Not much left for me knowing that I want to sell at £6.99 in shops.

What area's of the UK are you looking to retail this ? For that price you can forget about retailing it anywhere north of London for that price. No one one will pay that

 

[ethical PR]

You would also need to do some research on what your competition are selling their product at and standard marked up that retailers would expect.

This will help you understand whether you have a profitable product.

As above you will need to take into account fixed and variable costs.